RCA approves rates for GVEA pipeline - February 22, 2015

Providing coverage of Alaska and northern Canada's oil and gas industryFebruary 2015

Vol. 20, No. 8

Week of February 22, 2015

RCA approves rates for GVEA pipeline

State regulators have approved a settlement agreement between Golden Valley Electric Association Inc. and Petro Star Inc. for use of a short pipeline system in the Interior.

The settlement became necessary after Flint Hills Resources Alaska Inc. ended its North Pole operations last year, leaving GVEA to offset a 90 percent decline in system revenue. Previously, GVEA had used a 2011 ratemaking methodology to determine shipping rates on the pipeline, which was used to deliver oil to GVEA power plants in the region. The new settlement requires Petro Star to pay GVEA $308,278 per month during 2015.

Last year, the Regulatory Commission of Alaska approved a different agreement between the parties, which allowed GVEA to include fuel purchases from Petro Star in its rates.

- Eric Lidji

Petroleum News - Phone: 1-907 522-9469 - Fax: 1-907 522-9583
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